Question 1

One of the first steps in developing a compensation plan is:

Accepted Answer

Determining whether hiring is for an hourly or salaried position is one of the first steps in developing a compensation plan. This decision will determine how employees will be paid and what benefits they will receive. It is an important foundational decision for the development of a compensation plan. A pay review and employee performance tracking are important steps in compensation planning, but they come after the decision of whether the hiring is for an hourly or salaried position. Paying an above-market salary to create loyalty may not be a sustainable or feasible option for all companies, and it also does not address the foundational decision of whether hiring is for an hourly or salaried position.

Question 2

Bill runs a small business and is in the process of revising out his company's compensation plan.After researching the market and determining the salary range,Bill starts to plan how much of an increase in pay he can offer each employee subsequently.In the context of increasing pay,which of the following is the most appropriate course for Bill to follow?

Accepted Answer

It is generally considered best practice to base pay increases on an employee's performance, value, and contribution to the business. This approach encourages and rewards hard work, incentivizes productivity, and ensures that pay is equitable among employees with different levels of performance and tenure. Checking salary surveys and want ads (B) can provide useful information about market trends, but it does not take into account individual performance or contribution. Paying the amount needed for basic necessities (C) does not necessarily align with the company's profitability or an employee's value to the business. Allocating a fixed percentage of the budget (D) may not accurately reflect individual performance or contribute to fair and equitable compensation.

Question 3

Letting an employee make an on-the-spot decision for the companies' best interest displays the employee's _____ at the work place.

Accepted Answer

Allowing an employee to make a decision on the company's behalf displays empowerment, showing that the employee has the trust and authority to act in the best interest of the company. Nepotism refers to favoritism towards family members, while training and teamwork are important but not the most relevant in this scenario.

Question 4

There are two parts to a formal performance appraisal:

Accepted Answer

The answer of There are two parts to a formal...

Question 5

_____ is the amount needed for a person to meet the basic necessities of life from a single job.

Accepted Answer

A living wage is the amount needed for a person to meet the basic necessities of life from a single job, such as food, housing, and healthcare. In contrast, incentive refers to a reward or motivation to encourage certain behavior or performance, employee benefits generally refer to non-wage compensation provided by employers, and a benefit plan is a specific arrangement of benefits provided to employees.

Question 6

Which of the following is true of new employees in terms of communication?

Accepted Answer

Scheduling one-on-one meetings with new employees is an effective way to communicate the goals of their position and expectations for their performance. This helps them understand what is expected of them and gives them a chance to ask any questions they may have. It also helps to establish a positive working relationship between the new employee and their manager. Option A, B, and D are incorrect because they do not accurately reflect effective methods of communicating with new employees.

Question 7

Which of the following is an example of long-term incentives to employees that help retain valuable team members?

Accepted Answer

Stock options are a common long-term incentive used by companies to retain valuable employees. These options give employees the right to purchase company stock at a discounted price in the future, which can provide a significant financial benefit if the company performs well. This can motivate employees to stay with the company for the long term and work towards its continued success. Perks, referral bonuses, and employee bonuses are often short-term incentives that may not have the same impact on employee retention.

Question 8

After determining an organization's compensation philosophy,the next step in developing a compensation plan is to:

Accepted Answer

Finding comparison factors for salary is the next step in developing a compensation plan after determining the organization's compensation philosophy. This involves researching and analyzing similar jobs in the market and determining a competitive salary range for the organization's jobs. Developing a job description, providing stock options, and offering health insurance may be part of the overall compensation package, but they are not part of the immediate next step in developing a compensation plan.

Question 9

Which of the following concepts is based on the perception that promises have been made in exchange for certain employee obligations such as giving of their energy,time,and technical skills?

Accepted Answer

The concept based on the perception that promises have been made in exchange for certain employee obligations such as giving of their energy, time, and technical skills is the psychological contract. Open-book policy refers to a business practice of sharing financial and other confidential information with employees, while work facilitation and autonomy refer to management strategies aimed at enhancing productivity and employee empowerment.

Question 10

One of the three guidelines of training is that training _____.

Accepted Answer

Training should be thought of as an investment because it can improve employee skills and productivity, which can lead to increased profits for the organization. Providing ongoing training can also help to retain employees and create a culture of continuous learning and development.

Question 11

Which of the following psychological contract items would fall under an employee's work facilitation factor?

Accepted Answer

Work facilitation factors refer to the resources and support provided by the employer to enable employees to effectively perform their job. Enough resources to do the job falls under this category. Job security and increasing responsibilities relate to career opportunities or growth, while vacation benefits are a form of compensation.

Question 12

_____ refers to the concept that key employees should be able to see and understand a firm's financials,that they should have a part in moving the numbers in the right direction,and that they should have a direct stake in the strategy and success of the firm.

Accepted Answer

An open-book policy refers to the practice of sharing financial information with employees and involving them in the financial performance of the company. This encourages transparency, accountability, and active participation in achieving the goals of the organization. This policy is intended to empower employees by giving them a direct stake in the firm's success.

Question 13

Which of the following factors refers to providing meaningful work for employees,which gives them the feeling or belief that the day's work had a valuable impact to the company and that they made a difference?

Accepted Answer

Contribution refers to providing meaningful work to employees which makes them feel that they have made a valuable impact on the company. Empowerment is giving the employees the authority to make decisions, training is giving employees the necessary skills and knowledge to perform their jobs, and teamwork is working collaboratively with others. While all of these factors can contribute to employees feeling valued, contribution specifically refers to the meaningfulness of the work itself.

Question 14

According to the five factors most valuable to employees,which of the following is a reason employees leave a company?

Accepted Answer

The five factors most valuable to employees are compensation, benefits, work-life balance, opportunities for professional development, and a positive work environment. Being denied professional development and learning opportunities to expand their job responsibility falls under the category of opportunities for professional development, which is a crucial factor in retaining employees. Therefore, option D is a reason why employees leave a company.

Question 15

According to Jill Kickul's study,which of these factors is least important to employees?

Accepted Answer

The answer of According to Jill Kickul's study,which of these...

Question 16

Which of the following psychological contract items would fall under the factor of an employee's autonomy and growth?

Accepted Answer

Increasing responsibilities relate to an employee's autonomy and growth as they provide opportunities for personal development and decision-making.

Question 17

According to Jill Kickul's research,which of these factors is most important to employees?

Accepted Answer

Jill Kickul's research suggests that autonomy and personal growth are the most important factors to employees. This means that employees value having control over their work and being able to develop their skills and knowledge. While benefits, rewards, opportunities, and job security are also important, they are not considered the most important factor.

Question 18

Which of the following terms refers to the privileges,services,or even tangible items given to employees as part of the overall compensation and benefits package?

Accepted Answer

Perks refer to the privileges, services, or tangible items provided to employees as part of their compensation and benefits package, such as free meals, company car, gym membership, and so on. Bonuses, long-term incentives, and health insurance are all part of the compensation and benefits package but do not specifically refer to perks.

Question 19

Which of the following is true of 401(k)plans?

Accepted Answer

401(k) plans are typically easier to administer and less expensive than traditional pension plans. Option A refers to leave policies, Option B is incorrect in stating that 401(k) plans take no more than 3 percent of the annual personnel budget, and Option C is incorrect as employees do have control over the amount of their contribution and how the money is invested.

Question 20

Which of the following would implicate employee empowerment?

Accepted Answer

Employee empowerment involves giving employees the authority and autonomy to make decisions that benefit the company. Allowing employees to make on-the-spot decisions for the company's best interest is a clear example of this. Providing learning opportunities, meaningful work, and recognition are also important aspects of employee empowerment, but they do not directly implicate the delegation of decision-making power.

Quiz 19: Human Resource Management: Small Business Considerations